Replies to This Discussion

Permalink Reply by Wendy Smith on April 28, 2011 at 10:39am

interesting.  I've never seen a fee like that from BoA...why would financing make a difference?  as a matter of fact, how would such a fee be reflected on the GFE?  Does the rest of the HUD look right?  no short sale negotiating fees the listing agent is trying to pass on to the buyer?  anyone else ever see such a fee?

Permalink Reply by Jeff Payne on April 28, 2011 at 10:40am

It is most likely a cash contribution from the seller.

Permalink Reply by Wendy Smith on April 28, 2011 at 10:42am

cash contribtuion from the seller would be at the bottom of the right side indicated as CASH DUE FROM SELLER

Permalink Reply by Cal Yoder on April 28, 2011 at 10:46am

Yes, on the HUD there is a cash contribution from the seller, but there is also the same thing on the buyer side. Why not have the contract price be $76,500. I am not clear why the buyer is also being charged cash towards the 1st lien.

 

 

Permalink Reply by Cal Yoder on April 28, 2011 at 10:48am

I also forgot to ask about the investors unwillingness to pay for water/sewer/trash which is a first place municipal lien. the investor will pay this fee if the prop goes to foreclosure. Anyone had luck with the investor paying this fee and not trying to pass it along to seller or in this case to the buyer.

Permalink Reply by Wendy Smith on April 28, 2011 at 10:53am

ok, so we have a seller contribution of $2500, seller doesn't have it (or refuses to pay it), so listing agent is saying buyer has to pay it (after all buyer has cash)?  could that be it?

Permalink Reply by Heather Robins on April 28, 2011 at 10:57am

The cash contribution is usualy Mortgage Insurance, meaning it goes to BofA and then they forward it on the MI company.   With BofA more than any other lender MI is starting to become the 1st and them the second...  They said they HAVE to put it that way on the forms otherwise the deal wont go, I've had one die because even though the amounts totalled the same it wasn't how they needed it to look for the MI company and the buyer couldn't get the loan with they way they wanted the HUDS to look.  I've never had a problem with them paying for utities, to be honest my assumption is that the initial estimate HUDS didn't have it on there or wasn't correct when doing the short sale and so approval wasn't done with those figures. 

Permalink Reply by Jeff Payne on April 28, 2011 at 10:57am

Is there anyway for you to post this or send it to me [email protected]  you can cross out any names

Permalink Reply by Heather Robins on April 28, 2011 at 11:04am

Oh and it most likely  is the only way to get the deal done by having the Buyer pay for part of it.  It comes down to the Seller can only do so much in cash and usually they need the Buyer to also contribute (as long as it is cash it can come from whoever.)  So my last deal the MI wanted 17K in cash, the seller could only do 3K and so the Buyer/Agents etc.. would have to come up with the rest (and no it cannot be financed in, tried that)

Permalink Reply by Cal Yoder on April 28, 2011 at 2:43pm

I did relook at it. The buyer is paying it and it is being reflected as money given to the seller. So it is one fee of $2500 being charged to the buyer.